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Circuit Breaker
Circuit breakers halt trading on an index or stock when prices move beyond a set percentage in a day. Market-wide circuit breakers in India trigger at 10%, 15% and 20% moves in the Nifty or Sensex.
Why It Matters
They are designed to give investors time to think instead of panicking.
In India
Indian markets hit a market-wide circuit breaker in March 2020 as pandemic fears spread.
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